Netflix could always plow that additional revenue back into content, but it's likely that at least some of it would show up in its bottom line. Netflix's domestic streaming costs have remained relatively stable over the last four quarters, rising only 6.5%, even as its domestic streaming revenue has climbed more than 17%. That would add an additional $100 million to Netflix's quarterly revenue, a gain of around 6%. Assuming Park Associates' findings are accurate, the complete elimination of password sharing could boost Netflix's domestic subscriber base to more than 45 million (assuming all of the people currently sharing passwords would pay for their own accounts). subscribers as of the end of last quarter.
While that may bode well for Netflix's long-term growth target, password sharing is a problem that seems fundamental to Netflix's business model - one that may never be solved.Īccount sharing by the numbers Netflix had just over 41 million U.S. This suggests that password sharing may be costing Netflix more than 4 million additional domestic subscribers. households that access Netflix ( NASDAQ:NFLX) are using other people's accounts, according to a recent report from Park Associates. He writes about tech stocks and consumer goods.Ībout 11% of U.S.
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